Regulating a Pilot Project in the Absence of Legislation Specific to Carbon Storage

Abstract

The CO2CRC Otway Project was initiated in 2004 as a first of a kind pilot project when there was no legislation for regulating Carbon Capture and Storage (CCS) activities. After much deliberations on how this project was going to be regulated in 2006 and the preparation of documents for regulatory approvals in late 2006 and 2007, the project came into operation in April 2008 with approval from three key authorities.

This paper sets out the journey of how the Otway Project, a pilot carbon storage project, was approved in the absence of legislation specific to regulating carbon storage. It covers the challenges of getting a pilot project approved through government including: • managing timelines and resources;

• clarifying the regulatory framework for a pilot project;

• ensuring that the project approvals are fit for purpose;

• engaging the right authorities in the project approvals processes;

• allowing adequate time and resources for land access negotiations;

• allowing for continuation of pilot projects with the development of new legislation;

• resolving project responsibilities and long-term liability prior to project commencement; and

• taking a proactive approach to stakeholder engagement including engaging the media.

The Project presented many challenges along the way but these were worked through between the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC), the operator of the Project and the Victorian Government. With lateral thinking on the regulators’ part and sheer perseverance of project facilitators in Victorian Government, the Project was delivered putting Victoria on the map as a State making an important contribution to advancing research into greenhouse gas geological storage.